It is not easy to borrow money with a negative BKR registration. In some cases it is even totally impossible. However, a positive BKR does not stand in your way at all. In that case it is even possible to borrow at extra low interest rates. There are also other privileges.
For example, people with a positive BKR code may be red at their bank or carry a credit card. Negative BKR coding, on the other hand, is a major obstacle to a loan. Many lenders do not want to provide a loan to someone with a negative BKR. In that case, it is advisable to either take out a mini-loan (which does not require a credit check) or write to lenders who do not request a credit check.
What is BKR coding?
BKR stands for Bureau Credit Registration. First, let’s start by saying that BKR is something general. A registration here certainly does not have to be negative. You will be registered with the BKR if you have taken out a loan in the past or if you still have a loan. You can also receive a negative or positive BKR coding. You will receive a positive BKR code if you have repaid your loan within the correct term. Negative BKR coding is caused by late repayment of a loan and by skipping interest payments multiple times.
Take out a mortgage with a negative BKR
A mortgage with a BKR registration is almost impossible. However, it is possible in some cases. Then all kinds of other aspects must be positive. Consider, for example, a considerable surplus value of your house or if you put money into the house yourself. Another condition that a lender can set is that you take out a certain insurance policy.
Borrowing money with BKR is not always easy, but it is certainly possible. It is important here which BKR listing you have. Indeed, there is such a thing as a positive BKR listing. Anyone who borrows money, for example a mortgage, gets a credit, a credit card or even a subscription for a mobile phone is registered with the BKR. This is called a positive BKR listing, as long as you neatly meet your obligations (interest and repayment).
Borrow money with BKR
However, if you are faced with payment arrears because you cannot pay the interest, the repayment or the subscription fee, you can get a negative BKR listing. This can influence whether or not you can take out a new loan, a new credit and even a new mobile subscription. Banks and lenders, but also providers of mobile telephony, first check with the BKR whether someone has a listing before going to work with them. So if you have a negative BKR listing, it can certainly be more difficult to borrow money.
As soon as you borrow money in the Netherlands, it will be registered with the BKR. However, this is then a positive rating and there is nothing wrong. The BKR records all loans and credits in the Netherlands. Whether you borrow money for a house, a car or a new television, everything is registered with the BKR. Even if you take a credit card or a subscription to a mobile phone, it will still be noted. Potential lenders can then use this information to determine whether someone is still creditworthy or not. But as said, borrowing money with BKR is no problem, as long as the BKR listing remains positive.
Negative BKR listing
In addition to a positive BKR listing, there is also a negative BKR listing. If you have a negative BKR listing, borrowing money with BKR will be a lot harder. You will receive a negative BKR listing if there are or have been problems with payments. If you have not paid an existing loan once or have paid it too late, that will not be a problem, but if you are 2 or 3 months behind, the BKR listing will result in a negative BKR listing. What kind of loan that is does not matter, as soon as you can no longer pay it off you will get a negative BKR listing. This also applies if you have a credit card and you spend more than you can pay or redeem.
There are various forms of negative BKR listing, from class A1 to A4, with A4 the most important. If you have a negative BKR A1 listing, it may be that you have not paid your repayment once and you have already made a payment arrangement with the lender or that you have already made the repayment in full. With a negative BKR A4 listing you are no longer able to meet your obligations.
So borrowing money with BKR is possible?
Borrowing money with BKR is therefore a lot more difficult if your BKR listing is negative. However, if you have an A1 rating, it generally does not have to be a problem. With an A4 listing you can, however, forget a loan.
Do you have a negative notation in the register of the Credit Registration Office (BKR) and would you still like to borrow money? Most people think that borrowing money with BKR is no longer possible, but this is absolutely not true. In the Netherlands there are many lenders active, more than half of these loan companies do not even look at the client’s loan history in the BKR when granting a loan. Most lenders only ask about your financial situation at the moment, for example you may have to submit a number of payslips from the past months before you can take out the loan.
If you mainly borrow small amounts, you can still apply for a small loan from more than half of the lenders in the Netherlands. However, if you want to borrow thousands of euros, you suddenly have much less choice from loan companies. Most lenders are willing to give you a small loan, but are a lot more cautious about providing larger loans. The problem with a negative notation in the BKR is that you have often been unable to do anything about it, since it is human to pay off
forgotten when your loan has a term of several years. The first time you forget to pay off the loan, the lender is obliged to first inform you of this. In the event of a repetition of the non-payment of the repayment, the provider may register you with the BKR. A notation remains in the BKR for quite a long time, so until the time that this note disappears you must borrow money with BKR.